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Currency-Price Swings Disrupt Global Markets

Surges, Volatility Threaten to Destabilize Emerging Economies, While Hurting Exports of Developed Countries

By

Joanna Slater and

Jon Hilsenrath

Updated Oct. 25, 2008 12:01 a.m. ET

Sharp moves in global currency markets are being driven by short-term factors such as the fear of economic distress and the unwinding of trades that depended on borrowed money. But the currency swings are likely to have long-term economic implications for developed and emerging economies.

The dollar and the yen have both soared against nearly every other global currency over the past month as investors became convinced that a...